Food prices goes up by 20.28%, highest since 2019 even as Inflation drops consistently for 6 months – NBS

The National Bureau of Statistics today have released the Consumer Price Index which measures inflation with the index dropping marginally from 16.10% in June, 2016 to 16.05% as at last month.

The Bureau in its report stated that this was the sixth consecutive time during which the index would be dropping since January this year.

“The inflation report for July 2017 reveals that headline inflation has again reduced to 16.05% (year-on-year) in July 2017, compared to 16.10% in June 2016”.

“This makes it the sixth consecutive decline in the rate of headline year on year inflation since January 2017”.

“On a month-on-month basis, the Headline index increased by 1.21% in July 2017, 0.37% points lower from the rate of 1.58% recorded in June”.

The consistent fall in inflation will however not reflect in the rate the CBN is fixing for interest as reinforced by Jameel Ahmad, FXTM Vice President of Market Research, today. The CBN Governor made the same claim in May.

“Although a reading above 16% is still high, the news of a consistent decline in the inflation rate, shows that the excessive inflation pressures in recent times, have at least eased.” Jameel Ahmad explained.

The NBS report also shows that price of food has risen by 20.28% being the highest since 2009.

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